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Legal Issues
Do teens starting a small after-school business have to have a license or register their business?
We are developing a program for teens in a community center to learn how to set up their own businesses (such as landscaping, pet sitting, jewelry making, etc.). What regulations govern these businesses?

Asked by K. Roos
Posted: Thursday, March 27, 2008  |  Found in Legal Issues


More answers by Nina Kaufman
Answer by Nina Kaufman
Teens starting a business have all of the same legal issues as adults starting a business--and then some. They need to form a business entity, meet licensing requirements (depending on the state--see htt
p://www.sba.gov/hotlist/license.html
), have contracts with their clients, get insurance, and possibly get bonded (depending on the business). They also have to ensure that an adult is part of the process when it comes to things like forming an entity, signing contracts, and getting loans. I would recommend that as part of your program, you bring in an attorney to speak on these issues. He or she could also better address the specific licensing requirements (if any) of the kinds of businesses the teens want to form.
Nina Kaufman has a New York City-based boutique law practice and is president of Wise Counsel Press LLC, which produces legal information products for entrepreneurs. She writes the Making It Legal blog and the Business Law Advisor column for WomenEntrepreneur.com.

Note: This response is for your general information only. Be sure to consult with an attorney regarding your particular situation to get the advice you need.



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